So I'm curious a out this new $600 third party rule. I sometimes sell things online as I'm sure many others here do as well for some extra cash and now you will get a 1099k once you hit $600. O obviously if it something you've sold they want to collect taxes on but does social security consider this earned income and expect you to claim it? I havent heard anything about this specific scenario.
-
-
It is income. Whether it’s taxable, or substantial, or enough month over month to trigger the Trial Work Period, depends on just how much $.
Real kicker is we are supposed to report any income monthly. Not doing so might be considered an issue, when IRS gets the 1099, tells SSA there was income, but SSA has no monthly reporting of it.
If you’re not earning more than SGA, monthly, or enough to trigger the Trial Work, it probably won’t affect anything. Although some measure of it may be taxable. The not reporting it throughout the year is what I would dig into more. With a CPA.
edit: I’ve been advised to report every 1099 I get from online sales, then fill out a Schedule C showing fair market value of items sold being less than my sale price, generating a loss, therefor not taxable. If IRS wants to dispute the fair market value during an audit, that’s their right."I have great faith in fools; ‘self-confidence’, my friends call it." - Edgar Allen Poe
"If you only know your side of an issue, you know nothing." -John Stuart Mill, On Liberty -
Now that you mention CPA, I actually have a guy coming over on new years that is a cpa and runs his own office. I'll ask him and if he cant answer something I'll go to the social security office. I think this may be considered self employment now that I think about. I did see the monthly limit has been raised starting next year, I think to around $1400 a month. I dont think I could get anywhere near that selling things on ebay.Comment
-
Thanks for dropping a little knowledge!Comment
-
What exactly is the trial work period?
Let's say someone was on SSDI and Medicaid but wanted to make about $1,000 a month on the side. Something under the limit.
Is there any paperwork that needs to be filled out with anyone? Does SSI need to know? Or does the person in question just do what they have to do and pay taxes on it?Comment
-
I’m not an expert, but as I understand it, any month in which someone on SSDI works needs to be reported.Originally posted by Mitchitsu View Post
https://choosework.ssa.gov/blog/2018...o-receive-ssdi
We can report wages for up to 2 years prior, so back reporting is fine, but if that adds up to the 9 months (or you’re on SSI) there could be “overpayments” that SSA will claw back via litigation.
Any income over a threshold triggers that month as a “trial work period” month. 9 of those triggers the SSA to determine the disability has ended. This is a smaller part of their Ticket to Work program. The threshold now is $970, bumping up next year.
https://www.ssa.gov/OACT/cola/twp.html
https://choosework.ssa.gov/blog/2017...ticket-to-work
It’s complex enough that this type of advice is no better than “Googling” and reading for oneself. So, I highly recommend consulting an expert in Social Security benefits. (Usually an attorney or CPA unfortunately $$$.)
"I have great faith in fools; ‘self-confidence’, my friends call it." - Edgar Allen Poe
"If you only know your side of an issue, you know nothing." -John Stuart Mill, On LibertyComment
-
Thank you very much for that information. Really appreciate itOriginally posted by Oddity View PostComment
-
Merry ChristmasFollowing concerns expressed by the tax community, the electronic transactions industry and some lawmakers, the IRS said Friday it would delay by one year the implementation of a rule change that would have resulted in a virtual paper chase of tax formsgoing out by January 31, 2023, to anyone using such apps for their business transactions.
https://www.cnn.com/2022/12/23/inves...ons/index.html"I have great faith in fools; ‘self-confidence’, my friends call it." - Edgar Allen Poe
"If you only know your side of an issue, you know nothing." -John Stuart Mill, On LibertyComment
Comment